Blue Sky raises $60 million for Australia’s first alternatives LIC

Strong investor interest has seen Blue Sky Alternative Investments Limited raise more than $60 million in an Initial Public Offering (IPO) of its Alternatives Access Fund, exceeding the minimum subscription level of $50 million.

The new Listed Investment Company (LIC), set to debut on the Australian Securities Exchange (ASX: BAF) on Monday 16 June, will be Australia’s only directly managed, alternatives-focused LIC, a unique investment vehicle available on a wide range of platforms[1].

Blue Sky’s investment director Alexander McNab said the listing marked Blue Sky’s most important milestone to date.

“Now Australian investors can directly access the only actively managed diversified alternatives investment vehicle on the ASX.”

According to Rainmaker data from December 2013, alternatives are the fastest growing asset class in Australia, increasing from five percent of all investments in 1997 to more than 13 per cent at the end of 2013. This trend is continuing with almost 20 per cent of all investments forecast to be allocated to alternatives by 2033.

Alexander McNab also thanked the joint lead managers to the offer Ord Minnett Limited and Morgans Corporate Limited, and co-lead manager Shaw Corporate Finance Limited for their role in the capital raising.

Ben Wilson from Ord Minnett Corporate Finance said they had received a lot of interest from financial planning, private wealth, SMSF and retail investors, who had found it hard to access alternatives until now.

“While most Australian LICs invest in listed equities and fixed interest, the Alternatives Access Fund will hold a diversified portfolio of alternative assets managed by Blue Sky across the company’s four divisions of real assets, private equity and venture capital, private real estate and hedge funds,” Ben Wilson said.

Official quotation of the company’s securities is due to occur on Monday 16 June 2014. The company raised $60.39 million under the offer by the issue of 60,391,800 ordinary shares each fully paid at an issue price of $1.00.